The Medicines Company Inc
Q2 2010 Earnings Call
July 28, 2010; 08:30 am ET
Clive Meanwell - Chairman & Chief Executive Officer
Glenn Sblendorio - Executive Vice President & Chief Financial Officer
Michael Mitchell - Director, Communications & IR
Adnan Butt - RBC Capital Markets
Matt Duffy - BDR Research
Good day, ladies and gentlemen and welcome to the Medicines Companies second quarter 2010 earnings conference call. My name is Stacy, and I will be your conference moderator for today. At this time, all participants are in a listen-only mode, we will conduct a question-and-answer session towards the end of this conference (Operator Instructions).
I would now like to turn the presentation over to your host for today, Mr. Michael Mitchell. Please proceed.
Thank you, Stacy and good morning everyone. Thank you for joining us to review The Medicines Company second quarter and first half, 2010 financial results.
I’d like to remind you that this call will contain forward-looking statements about The Medicines Company that are not purely historical, and all statements that are not purely historical may be deemed to be forward-looking statements, which involve a number of risks and uncertainties. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates” and similar expressions are intended to identify forward-looking statements.
Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are identified in the company’s SEC filings, including on Form 10-K with the SEC on May 10, 2010. Copies of our SEC filings can be obtained from the SEC, or by visiting the Investor Relations section of our website.
I would also note that during the call we may refer to non-GAAP measures, which include costs associated with the Targanta acquisition last year, stock-based compensation expense, and non-cash income taxes. Please refer to the non-GAAP reconciliation tables in our press release.
I'll now turn the call over to Clive Meanwell, our Chairman and CEO. Clive.
Thank you, Michael. We aimed to be leaders in acute and intensive care medicine worldwide and during the second quarter we made progress towards that goal. To time leadership we must deliver innovative products that create value for customers in leading market share in 2650 leading hospitals in the 25 countries in market segment we choose to compete in, and we must demonstrate high levels of productivity both in terms of knowledge and financial measures to enable sustainable growth.
When we reported our first quarter results on April the 28, I focused on three main themes for our business operations update. First a continued revenue growth based on demand for Angiomax and Angiox worldwide; second, moving forward our focus portfolios to six compounds in acute and intensive care medicine; and third improving the efficiency of our business as to say doing more with less,
Today reporting results for the second quarter and first heal of 2010, I’ll return to these themes. Hospitals worldwide continued their strong demand for Angiomax and Angiox. Second quarter net revenues of $110 million were our highest quality net revenues today. Net revenue for the first half year was $212 million.
In the United States net revenues for the second quarter were $104.1 million, up 9% for the first quarter and even up 6% from this time last year when customers bought in anticipation of a price increase. Today our prices are on aggregate a little lower that last year as reported during our first quarter call, but we more that made up for that with increased volume and sale.
We enjoyed one small increase demand from our operating unites in Europe, where volume and net sales increase by 55% and 45% respectively compared to the same quarter last year. Italy, France, Scandinavia, Benelux and the United Kingdome posed strong growth. Germany grew more modestly.
For the first half of the year revenue gains in our operating unite were 59% in volume and 58% in sales, the difference being accounted for by foreign exchange and price changes.
Our partner for Spain, Portugal and Greece group over there also posted strong growth with 164% increase to next revenue for the first half of the year. Overall despite modestly lower sales in Canada, Angiomax and Angiox international next revenue increased to $5.8 million for the quarter and to $11.4 million for the first half year, up 48% versus last year at this time.
While our international revenues are at present, still a modest portion of our worldwide sales, the demand growth rates show we are gaining traction and we look forward to continue growth in these markets, where Angiomax and Angiox already have assured exclusively until 2015.
The underlined value to our customers and to there patients is the key to increased demand. More and more PCI patients have been given Angiomax because of date and experience showing improvements in mortality leading and costs relative to alternative treatments. The major first quarter publication of comparative effectiveness data by Jeremy Rassen and his colleagues
Angiomax, because of data and experience showing improvements in mortality, bleeding and costs relative to alternative treatments.
The major first quarter publication of comparative effectiveness data by Jeremy Rassen and his colleagues [Marvid] in the European Heart Journal, which showed lower mortality, bleeding and length of stay with Angiomax, was followed in the second quarter by the publication of yet more real world comparative effectiveness data in JAMA by Dr. Steven Marso and colleagues from the Mid America Heart Institute.
Dr. Marso reported analysis of data from around 1.5 million patients undergoing PCI procedures performed at 955 US Hospitals who participated in the United States National Cardiovascular data registry.
The data was taken between 2004 and September 2008.
The investigators used appropriate hospital adjusted propensity matching to control for potential confounding such as often observed in outcome of data sets of this size and diversity. Among patients given Angiomax, the risk of major bleeding was significantly reduced by one-third relative to alternative care. When Angiomax was used with closer devices, major bleeding was reduced by more than 60%.
We note from many sources that use of Angiomax reduces hospital costs. With more than 300,000 patients treated in the first half of 2010. Based on these published data, we may estimate more than $150 million cost saving for our hospital customers even after paying for Angiomax.
The health and economic benefits of Angiomax will we believe continue to drive worldwide growth in demand, especially during challenging economic times for the healthcare system. I will now provide a brief update regarding intellectual property and regulatory facility for Angiomax in the United States.
First, litigation again the patent and trademark office, FDA and HHS, in which we challenge the PTO's in all of our patent term restoration application for Angiomax is still under consideration following a hearing in U.S. District Court in Eastern Virginia on May 21st. At the hearing, the judge ordered and the PTO issued an interim extension of the Angiomax 404 composition of matter patent through and including 10 days after the court issues an order deciding the case. I do not wish to speculate on the timing or outcome of that decision.
Second, on the legislative front, we continue to advocate for a change in the patent law. Third, as announced previously, we began lawsuits to defend new product patents obtained on Angiomax last fall and which are listed in the FDA Orange Book with expiry dates in 2028.
The suits claim that Teva Pharmaceuticals and its subsidiary Pleva and APP pharmaceuticals infringed these new so called 727 and 343 patent based on their applications to market a generic form of Angiomax prior to 2028. More recently, Hospira, Inc. filed a paragraph 4-certification relating to the 343 and 727 patent, which we disclosed on July 9. We intend to defend our intellectual property against all of these parties vigorously.
Our second FDA approved product Cleviprex is not yet back in U.S. distribution following our voluntary recall from the market in first quarter. We are sorry that the supply of this increasingly important drive has been interrupted and we have conveyed our apologies to the hospitals and caregivers that were increasingly adopting the drug as a preferred agent to manage acute sever hypertension.
We continue to work with our supplier to remedy quality issues in their plant. While we keep our customers fully apprised of progress, we will not release product until it meets our quality standards and any other issues in the manufacturing plant are resolved to the satisfaction of the FDA.
We remain hopeful, but not certain of resolution in the coming months. We have in the meantime informed regulators worldwide of the situation because many countries outside the United States are currently reviewing our applications for marketing authorization. We do not expect to launch the product in other countries until the manufacturing issues are resolved.
Let me turn to our development portfolio now. We have three products under NDA review or in Phase III, two in earlier stage clinical trials and we are also generating additional compounds in our research centers in Montreal, Canada, and Leipzig, Germany. We are developing Cangrelor, a Phase III injectable P2Y12 platelet inhibitors for patients undergoing PCI, for those awaiting major surgery while on Clopidogrel and for those with acute coronary syndromes.
As a reminder, the champion Phase III trials for Cangrelor publish last year in the New England Journal of Medicine did not meet the primary endpoint, but did show large consistence apparent effect from clinical endpoints including death, Q-wave myocardial infarction, urgent revascularization and acute stent thrombosis with no appreciable increase in major bleeding relative to 600 mg loading dose of Clopidogrel in PCI.
Cangrelor also demonstrated an ideal intravenous antiplatelet profile including rapid onset, short half-life, rapid reversibility of platelet function and smooth transition to oral Clopidogrel.
We note during the second quarter that we amended our Cangrelor licensing agreement with AstraZeneca in return for revisions to financial terms we extended the timeframe for the deal and got the green light to restart the Phase III clinical trial for Cangrelor.
We are now set to commence the new Phase III trial, a single study called Champion Phoenix. Professor Bob Harrington and Professor Deepak Bhatt will once again be the co-principal investigators. The protocol is complete and most of the nuts and bolts of the trial are in place.
We will work with the top performing 160 sites from the total of 350 sites, which participated in prior trials with Cangrelor. These 160 sites recruited more than 70% of the 14,000 or so patients in the Champion platform and PCI trials. The new Phoenix trial is designed to deal with the complexities of MI ascertainment, which we experienced in the prior trials.
Specifically, Phoenix will use the now well-accepted universal MI definition, which minimizes counting MI events associated with PCI in patients who are ischemic at the time of randomization. It’s also planned to enroll patients who are not receiving P2Y12 inhibitors prior to randomization, including those with stable angina undergoing elective PCI.
Investigators are analyzing 10,400 such Clopidogrel-naive patients from the prior trials and we expect those data to be reported in the full. Finally, we will add Academic Research Consortium defined stent thrombosis to the primary endpoint. Cangrelor showed an approximate 50% reduction in stent thrombosis in prior trials.
The Phoenix trial is double blind.
The parallel group randomized comparative treatment is Clopidogrel given according to institutional practice. The initial sample size is estimated at 10,900 patients and enables sample re-estimation after analysis. The trial may recruit up to 15,000 patients. We anticipate recruitment to be underway in the third quarter.
In addition, we continue to involve patients in the bridge protocol for Cangrelor, which aims to solve the very real and not infrequent problem of antiplatelet therapy bridging for patients on P2Y12 inhibitors who require discontinuation of therapy prior to surgery. We plan to include these data in NDA and MAA submissions if the trial is successful.
During the second quarter, we also made progress with Oritavancin, our injectable antibiotic with potent bactericidal activity, against the broad range of Gram-positive bacteria including staphylococcal strains with resistance to methicillin, so called MRSA and Vancomycin.
We agreed with FDA on 27 specific and important elements of the Phase III study design in acute bacterial skin and skin structure infections, so called AB SSSI and we believe that we are close to agreement on a special protocol assessment. We anticipate finalizing the protocol based upon FDA’s input and beginning enrollment in the second half of this year.
We are mindful of the complexities the agent is dealing with and the planned advisory board meetings and we look forward to a scientifically consistent approach to non-inferiority trials at this time. Oritavancin has potential for single dosing to cure MRSA and is therefore economically and clinically attractive. Further, activity against spores of Clostridium difficile differentiates Oritavancin from antibiotics that may be effective in this difficult to treat gut infection.
We are working in parallel in Europe and have met with the EMA expert group for anti-infective drug development. Based on their guidance, we believe that the Phase III program will also provide data suitable for European market authorization if the objectives of the trial are met.
Our third Phase III program, a new formulation and presentation for Argatroban is based on the established intravenous drug for treatment of heparin-induced thrombocytopenia and thrombosis syndrome. The ready to use formulation of Argatroban that we licensed from Eagle Pharmaceuticals, a private company for the U.S. and Canadian markets is under review with the FDA.
We licensed ApoA-I Milano from Pfizer late last year and we are now referring to the compound of MDCO 316; 316 is a naturally occurring variant of the apolipoprotein A-I found in human HDL particles that transport cholesterol from tissues to the liver. Given intravenously in ACS patients, 316 has potential to cause rapid regression of atherosclerosis.
A clinical proof of concept study published in JAMA demonstrated that five weekly intravenous injections of recombinant 316 in phospholipid complexes significantly reduced plaque volume; this implies potential for 316 to be a disease-modifying agent for ACS patients.
During the second quarter, technology and knowhow transfer from Pfizer was completed on schedule. We have restarted small-scale production for development studies and we expect preclinical studies to resume later this year as planned in preparation for clinical trials in 2011.
C 2010, which we are renaming MDCO 2010 is a serine protease inhibitor discovered and developed by our research center in Leipzig. Its mechanism of action as a plasma kallikrein inhibitor makes it similar to Tramadol. This molecule structure and metabolism may confer safety advantages.
During the second quarter, we completed plans and documents and secured permission from Swiss regulators to commence a clinical trial in cardiac surgery patients, which we expect to begin in the second half of 2010.
We made these commercial and development advances during the second quarter by doing more with less. We undertook painful measures to restructure the firm during the first quarter with total headcount reductions of more than 100 people giving cost savings of $14.5 million to $16.5 million per year. Nevertheless, we came to the second quarter stronger than ever in terms of operating performance. This is no coincidence, but rather the results of considered professional change management.
I’d like to thank my colleagues worldwide for their understanding, fortitude and dedication to doing more with less. For those professionals no longer with us, I offer my regret, my thanks and best wishes for future endeavor. We’ll continue to dedicate ourselves improving results for hospitals, caregivers and most of all the patients that they serve.
Two years ago, we identified 2650 hospitals in 25 countries that deliver 80% of the global critical and intensive care medicine in that target market. Today, we can reach approximately 2000 of these hospitals with our operations in 17 countries. We continue to expand our global footprint, as for example we expect to introduce Angiox into selected hospitals in Russia and India later this year.
In summary, we aim to be leaders in acute and intensive care medicine worldwide and during the second quarter we may progress to that goal. We continue to increase the number of patients who enjoy improved outcomes in PCI from Angiomax or Angiox. Our revenue and market shares are the highest they have ever been and we believe that based on published data and other factors this growth will continue.
We are moving forward our portfolio of six compounds in acute and intensive care medicine, each of which we believe has characteristics that provide potential for improved outcomes for patients and health systems and can obtain leading market share.
And finally, we are improving the efficiency of our business, that is doing more with less and we expect such performance to continue.
I’ll now handover to Glenn to review the financial results in little more detail. Glenn.
Thank you, Clive and good morning everyone. This morning, I will review the key financial highlights for the second quarter. Our net revenues for the second quarter were $110.1 million compared to $104.2 million in the second quarter of 2009, an increase of $6 million or approximately 5.7%.
This was largely driven by strongbox sales of Angiomax in the U.S., averaging approximately 1460 boxes per week, up from 1350 in the first quarter of this year. As discussed in the first quarter 2010, the company is now participating in the 340B drug pricing program offering qualifying customers, which include Disproportionate Share Hospitals or DSH institutions reduce pricing for certain patients undergoing PCI on an outpatient basis.
During the first half of 2010, approximately 280 accounts purchased Angiomax at the 340B price, which is a substantial discount off of our WAC price. Outpatient procedures have been increasing; we believe this number is approaching 20% of all PCI procedures that are now performed. This percentage is an average for all hospitals including both DSH and non-DSH hospitals.
This is good for Angiomax and we believe that the participation by DSH hospitals in 340B drug pricing program has helped drive additional volume during the quarter. Total Angiomax boxes sold to our distributor during the second quarter was approximately 19,000 and for the first six months we have sold over 36,500 boxes representing our GAAP sales.
Some for hospitals who had pull through was essentially the same for the same six months. Consequently, inventory levels are unchanged. Our gross to net remained at approximately 15% for the second quarter primarily due to the offering of 340B pricing to qualifying hospitals performing outpatient PCI.
Historically, our gross to net has averaged approximately 8%. We do expect, however, that the gross to net percentage will come down over time as purchasing patterns that qualifying hospitals align better with actual procedures performed.
However, for the remaining two quarters of this year, we believe the gross to net percentage will remain well above our historical rate of 8% and could be as high as quarter one and two. Outside the U.S., we are also seeing progress with sales totaling $5.8 million in the second quarter 2010 compared to $4.5 million in the second quarter 2009, an increase of $1.3 million or 29.2%.
Specifically, Italy, France, Scandinavia, Benelux and the United Kingdom have posted strong growth. Germany growth was modest. For the first half of 2010, net revenue was $212.2 million compared to $203.4 million for the same period of 2009, which represented 3% growth in the U.S. and 48% growth internationally.
R&D spent for the second quarter totaled $20.1 million compared to $21.8 million in the second quarter of 2009, a decline of approximately 8.5%.
R&D spending for the quarter focus of all seven major initiatives which included the completion of a transfer from Pfizer for ApoA-I Milano, now called MDCO316 completion of a Phase IA clinical trial for MDCO-2010 a surgical blood most product previously referred to as CU-2010 as well as preparation as Clive discussed for a trial in cardiac surgery patients.
In addition preparation work which included site selection for the beginning of our two Phase III trials for Oritavancin and Cangrelor, lifecycle initiatives on Cleviprex, investment in Angiox in Europe continues as well as lifecycle initiatives for Angiomax in the US.
Argatroban, our third Phase III program had limited spend in the second quarter and is under renew at the FBA, and as Clive talked about preclinical work in new compounds both in Leipzig and Montreal which include back up compounds for MDCO-2010 and work [CU facility]. We expect the two major Phase III oritivancin and cangrelor will initiate before the end of the year and as a result expect R&D to increase in the second half of the year.
R&D for this quarter also includes a payment made to AstraZeneca for the extension of the Cangrelor deal. SG&A spend for the second quarter of 2010, was $39.4 million compared to $45.9 million in the second quarter of 2009, a decrease of 6.5%. The decrease is inline with our plans to reduce annual SG&A by $14.5 million to $16.5 million and more to the resulted from our first quarter 2010 reduction in forth.
Headcount has been reduced by over 100 physicians since the beginning of the year. Second quarter net income was $15.4 million or $0.29 per share compared to $3.8 million or $0.07 per share in the second quarter of 2009. Net income for the first six months was $24.8 million or $0.47 per share compared to net income of a half a million or $0.01 per share in 2009.
Non-GAAP net income for the first six months was $30.8 million or $0.58 per share compared to non-GAAP net income of $15.5 million or $0.29 per share for the same period in 2009.
As you know non-GAAP net income excludes the transactions charges related to the Targanta acquisition, stock base compensation and non-cash income tax.
Finally, our balance sheet remains strong and we finished the quarter with $219 million in cash, which has increased approximately $43 million since the beginning of the year.
I would now like to turn the call back to Clive for summary and questions.
Thanks very much, Glenn. The financial results reflect growth and development progress during the second quarter. Stacy, perhaps we could open up the lines for questions now please.
Thank you. (Operator Instructions) Your first question comes from the line of Matt Duffy with BDR Research. Please proceed.
Matt Duffy - BDR Research
Good morning and thank you for taking my question guys. Couple of things, number one, Clive could you talk a little bit more assuming positive data come out of the Cangrelor Phase III trial. Just talk a little bit more about how that will fit into the overall picture of care of these patients?
Well, as you know Matt the antiplatelet therapy landscape is changing quite rapidly, could change quite rapidly today actually and we are looking at ways to improve the P2Y12 in addition through both the acute and chronic phases of therapy.
With Plavix, we obviously have the drug to beat in chronic terms and actually in the kit setting as well in the sense of being a benchmark and Plavix of course is going to be even more widely available and low cost. And so in the acute phase, we need to be able to beat that and also prove that the risk, benefit and value proposition for a drug like Cangrelor exceeds that which we see with other antiplatelet injectable, such as DPD inhibitors. I think that we can do that quite cleanly and assuming the trial is successful there will be a significant place for Cangrelor in the acute phase hospital setting.
Now, of course Prasugre and the centre of attraction for today day, ticagrelor are both important new additions to this area potentially. Prasugre launched primarily is now well under way. I think perhaps for some the penetration of the Prasugre into the ACS market is less than anticipated.
There are issues related to bleeding in some patients, which I think are always going to be holding up the development of a product, but I think its improved potency has established an important new benchmark for chronic therapy. Although has we said that study was done against 300 mg of Plavix loading, but I think overall people would accept if it’s more potent.
The big question mark will be whether Ticagrelor moves forward briskly in worldwide registration and assuming that it does and certainly we hope it does, it seems to be a good product then, I think that could become an important new standard for chronic therapy and one which we believe would fit very nicely with Cangrelor given intravenously and obviously that’s something which we need to continue discussing with our partner AstraZeneca how to make sure those two things go together like ham and egg.
We also though want to make sure that the drug can be used with Plavix, we now have very good data showing that and similarly there will be a lot of interest I think in potentially seeing how the drug produces Prasugre with, but overall I think the landscape is going to be improved with more effective drugs both acutely and chronically and with the real mind that bleeding must be kept to a minimum.
Matt Duffy - BDR Research
Okay, very good, thanks. Let me oritavancin front, you said you made a lot of progress with the FDA, do you feel like you have a solid understanding of exactly what registration requirements in skin and soft tissue infections are going to look like, there is so much discussion about priority margins, patient inclusion criteria, presence of abscesses and that sort of thing?
Do you feel like you have enough clarity from them to have a lot of confidence in a Phase III as you put it out there? Or is there still a fair amount in flux that you need to think about going forward?
I think we’re just about there. It has been a struggle; both for FDA professionals and for people in the industry and as you know there are many companies grapping with this issue together with the agency. Its complex, it’s difficult. The FDA, I think, have begun to home in on a consistent set of ideas which they have been sharing pretty consistently I think with sponsors.
There is an advisory panel meeting, another one planned I think for later this year and obviously that may have some impact, but I think that after all the debate and toing and froing between experts in academia, the agency and the industry I think we are pretty close now to a set of consensus ideas that people can go forward.
Clearly getting to this consensus has held up the development of a number of compounds including Oritavancin and I’m looking forward to getting some patients enrolled in meaningful clinical trials starting in the second half of the year, but I think one doesn’t want to start these trials until you have that level of consensus and understanding and it has been an important scientific discussion and hopefully it’s coming towards its end point.
Matt Duffy - BDR Research
Alright and good luck with that. Thanks very much.
Thank you, Matt.
Your next question comes from the line of Adnan Butt with RBC Capital Markets. Please proceed.
Adnan Butt - RBC Capital Markets
Hi, it’s Adnan for Jason Kantor. So a couple of questions, if you can provide some clarity. First, is there any fixed date in terms of when the court might act. Any clarity on that would be helpful.
Number two, in terms of the Argatroban, what’s the timing of that decision and what would your action be upon receiving the decision from the FDA? And then finally on the R& D run rate, I think I heard the company say it’s expected to go up in the second half of this year. Did I hear that correctly? Thanks.
Thanks Adrian. I am going to ask Glenn to handle a third of those questions in a moment, but first two, which relate to the East Virginia court case and Argatroban I’ll handle first.
We don’t have a fixed date or any indications of anticipated timing for the ultimate decision of the judge in that case. The case is still pending and we believe it would be inappropriate to speculate on when and how the judge will deliver his opinion. So I regret, I don’t really have any insights there that I can share with you.
Regarding Argatroban, obviously the action we are hoping for is that the FDA will approve this drug. Our partner at [Eagle] has been working hard to move this through the process.
We believe this is an excellent addition to the market place and we are looking forward to launching it right away once its approved.
So I think the course in effect here is an FDA approval, we hope followed by an aggressive launch in to the US market place and that’s something which we are looking forward to very much.
Glenn if I could turn over to you on the R&D question.
Yes, we did say that R&D would increase in the second half and its largely driven by the two-phase three trials we had advanced in cangrelor. So the timing of that as once we get patient I know we will see an up tick.
Now we did provide guidance earlier in the year, in which we said that the total R&D would be flat to down compared to last year. If you look at the first six months we are more clearly down, although the activity in the second quarter was quite robust. A lot of money spent on cangrelor in terms of the preparation. We talked about a milestone to Astrazeneca, which is also included in there, and spending on oritavancin also in terms of prefatory work has been ongoing.
So it’s not that these will go from a cold start to spending money. We spent approximately $20 million in the quarter. It was fairly well diversified. If I take those two programs we just talked about, those accounted for about 45%, possibly 50% of the spending in the first quarter. So we will increase as patients come in, but it’s not from a cold start. We have been spending quite a lot of money to get ready for these trials.
Okay and then just a final question on inventory. Is it still close to the lower end of where it has been historically and how about the portion of sales to just hospital back up?
Yes, so the inventory we have never given specifically where we are in the range of four to six weeks, but based on the numbers I talked about before and that the fact that sales to our distributors which are GAAP and sales for the hospital which are pulled through are essentially the same.
The inventory is really unchanged, in fact its declined when you look at a number of weeks, because the average number sold per week is up quite a bit from the last year and even quarter-on-quarter. The percentage of this hospitals in terms of overall number of accounts is about 10% of the total number of accounts buying. In terms of the actual number of this hospital, I’ll need to get back to you with exact number, but I know it’s 10% of the total purchases.
That’s fine. Thank you.
And at this time I would like to turn the call back to Mr. Meanwell for closing remarks.
Well, thanks very much to everybody for your interest today. We will continue to drive growth. We will continue to drive the development of our portfolio. We will continue to do more with less. At the end of the day it’s about serving the needs of hospitals, care givers and above all patients with acute and intensive illnesses treated at leading institutions around the world.
Thanks very much and we will look forward to our next update.
We thank you for your participation in today's conference. This does conclude your presentation. You may now disconnect and have a great day.
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